DANESTONE MORTGAGE & FINANCIAL SERVICES LTD

Executive Summary

Danestone Mortgage & Financial Services Ltd demonstrates ongoing solvency and liquidity concerns, reflected in negative net current assets and shareholders’ funds over multiple years. While regulatory filings are current and governance appears stable, limited financial transparency and persistent losses elevate its risk profile. Further financial scrutiny is advised to assess operational sustainability and short-term cash flow adequacy.

DANESTONE MORTGAGE & FINANCIAL SERVICES LTD - Analysis Report

Company Number: SC688903

Analysis Date: 2025-07-29 20:58 UTC

1. Risk Rating: HIGH

The company exhibits a persistent negative net current assets position and negative shareholders’ funds over the past three years, indicating an ongoing solvency risk. Despite being active and compliant with filings, the negative equity and current liabilities exceeding current assets raise concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Current Assets: Current liabilities (£15,584 in 2024) consistently exceed current assets (£11,889 in 2024), resulting in net current liabilities of £3,695, which suggests liquidity strain.
• Negative Shareholders’ Funds: Equity remains negative at £3,795 as of 2024, indicating accumulated losses and potential insolvency risk.
• Lack of Audit & Limited Financial Disclosure: The accounts are unaudited and prepared under the small companies regime with exemption from audit, and no Income Statement was filed, limiting transparency on profitability and operational performance.

3. Positive Indicators:

• Timely Filing: Both accounts and confirmation statements are up to date, showing regulatory compliance.
• Low Share Capital: While minimal (£100), it limits exposure for shareholders from a liability standpoint.
• Stable Director Team: Two directors appointed at incorporation remain current with no public disqualifications noted, indicating governance continuity.

4. Due Diligence Notes:

• Obtain detailed management accounts or audited financials to clarify operational profitability and cash flow generation.
• Review creditor ageing and payment terms to assess short-term cash flow pressures.
• Investigate the nature and collectability of debtors (£10,407) to confirm liquidity quality.
• Understand business model viability given negative retained earnings and equity erosion.
• Confirm absence of contingent liabilities or pending regulatory actions beyond public records.